Cobra & Medicare

[insurance0707]

I have a 74 year old that has Part A of Medicare only and was just terminated from his job. They have offered him Cobra. His boss told him that he had a special 8 month period to enroll in Part B of Medicare.

Does anyone know if the new subsidy would apply to him if he took Cobra. It seems like I read that if you were eligible for Medicare it wouldn't apply.

Also, what are the rules on applying for Part B of Medicare and Cobra. I don't run across this too often. He lost his coverage March 30th and he has until June 1st he said to enroll with Cobra or go with a Med supp instead.

Cobra premium $220 a month, not too bad when compared to regular Cobra premiums that I've seen.

 

[Todd King]

He should go with Medicare most likely. The part B premium along with the Med Supp premium would be around the same price as the Cobra and with no co-pays (except for drugs) or deductibles (except for the $135/yr deductible which may/may not be covered by his Medicare Supplement plan, depending on the chosen plan). When the Cobra runs out, he'll have to do it anyway so why wait.

 

[insurance0707]

Thanks Todd, that's what I was thinking also. I did some research on the web. It looks like he does have to sign up for Part B during the 1st 8 months. If he waits until the end of Cobra 18 months then he would have a penalty for not signing up for Part B and have to wait for the next enrollment period.

Another site listed that he would have to sign up for Part D within 63 days or he'd also get a penalty and then have to wait for the next AEP. That doesn't make sense though, usually when you go on Part B you have 3 months and it seems like his Cobra would be Creditable Coverage so he wouldn't need a Part D at this time.

 

[jdeasy]

Thanks Todd, that's what I was thinking also. I did some research on the web. It looks like he does have to sign up for Part B during the 1st 8 months. If he waits until the end of Cobra 18 months then he would have a penalty for not signing up for Part B and have to wait for the next enrollment period.

Another site listed that he would have to sign up for Part D within 63 days or he'd also get a penalty and then have to wait for the next AEP. That doesn't make sense though, usually when you go on Part B you have 3 months and it seems like his Cobra would be Creditable Coverage so he wouldn't need a Part D at this time.

Most likely the COBRA would be crediable coverage and the 63 days that you were told is correct. The 3 months prior and after is for IEP. You only get one of those. If you miss that one, everything is SEP after that and you must have a qualifying reason for the SEP.

 

[G.Gordon]

All you need to know is already been covered. I second Todd's advise.

That and... if you help him with Part D... stay away from any/all plan with Coventry, Advantra, or First Health... all one in the same. They don't know the meaning of SEP and you'll never get him covered.

 

[azmedsupagent]

Cobra is not creditable coverage! If he stays on cobra for longer than 8 months he will not get the part b sep. Also, if he waits longer than 63 days he will not get the sep into a med supp and will have to be underwritten. This maybe a problem if he has conditions. Your best bet is to get him on medicare with a supp asap. His coverage will be better and his premiums will be about the same.
I've been through this exact situation several times.

 

[insurance0707]

He knows that he has the 8 months to enroll in Part B, after that he would be penalized and have to wait until the next enrollment for Part B. Once he enrolls into Part B if it's now or 8 months later, he should then have a Open enrollment period for the Med supp. and could drop Cobra. What did they tell you azmedsupagent? If it went past 63 days he didn't have an Open enrollment period?

 

[jdeasy]

He knows that he has the 8 months to enroll in Part B, after that he would be penalized and have to wait until the next enrollment for Part B. Once he enrolls into Part B if it's now or 8 months later, he should then have a Open enrollment period for the Med supp. and could drop Cobra. What did they tell you azmedsupagent? If it went past 63 days he didn't have an Open enrollment period?

He would not have an open enrollment period when he got part B. You only have that once and he would have missed it. He would have a guaranteed issue period for 63 days to buy a med sup. That is not the same as open enrollment. See page 22 of the 2009 Choosing a Medigap Policy booklet. He would fall into category #2.

 

[InsureGuy5]

Best just to enroll in B now and get the supplement. Otherwise you would need to compare the supp with his current plan. Maybe the premiums are cheap because the coverage is substandard.

 

[insurance0707]

I looked on page 22. It states that if you have original Medicare and Cobra that pays after Medicare pays then you have the 63 day period to sign up on a guaranteed issue basis. In his case, Cobra is primary because he doesn't have Part B, they would pay first.

I am pointing out that the Med supp doesn't have the deductibles and copays that his current plan has. I'd prefer that he went with the Med supp over Cobra but ultimatly it's up to the client. I just want to make sure that he has an open enrollment period when he goes on Part B.